OREANDA-NEWS. The National Bank of Ukraine (resolution No. 101/БТ, dated February 12, 2015) has adopted a decision to provide liquidity support to Public Joint Stock Company "Bank "Finance and Credit" (hereinafter - Bank Finance and Credit JSC) and grant an emergency loan to this bank to ensure timely fulfilment of its obligations to individual depositors. The emergency loan worth UAH 700 million with a maturity of 2 years will be provided to this bank.

When adopting this decision, the regulator acted on the premises that Bank Finance and Credit JSC accounts for 4% of total household deposits, and 2% of assets within the banking system, whereas the financial institution itself belongs to Group 1 banks. The shareholders of Bank Finance and Credit JSC take measures to keep the bank afloat and inject additional funds into the bank to meet its capitalization requirements. In 2014, in particular, the bank's shareholders increased the authorized capital by UAH 500 million. They have recently announced an initial public offering of shares worth up to UAH 700 million (UAH 601 million in contributions have already been paid in) to increase the bank's authorized capital. In addition, the bank remains on track with its recapitalization program. The shareholders have announced their intention to further inject additional funds into Bank Finance and Credit JSC by increasing its authorized capital.

The integral property complex has been pledged as collateral against the refinancing loan from the National Bank. The collateral appraisal was carried out by one of the leading international audit companies that meet the criteria set forth in the NBU regulations. The National Bank of Ukraine regards the pledging of high-quality collateral and the aforementioned measures taken by the management team of Bank Finance and Credit JSC as credible evidence that the bank's shareholders and top management are committed to put one of the largest banks back on track.

Commenting on the NBU's decision to grant an emergency loan to Bank Finance and Credit JSC, First Deputy Governor of the National Bank of Ukraine Oleksandr emphasized that the regulator would continue to disclose information on bank refinancing. "We are set to make the refinancing procedure comprehensible and transparent to the maximum extent possible," said Oleksandr Pysaruk. According to him, information on the banks that obtain loans and the repayment of these loans will be published on a weekly basis.

"We have repeatedly emphasized and once again restate that the National Bank of Ukraine's top priority is to safeguard the banking system's stability. We support banks if we see the consistent implementation of the recapitalization plan and if there is an efficient crisis management framework in place," noted the First Deputy Governor of the National Bank of Ukraine.